[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Rules and Regulations]
[Pages 77820-77821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31669]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Part 2525

RIN 3045-AA09


AmeriCorps Education Awards

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

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SUMMARY: We are amending a provision of our National Service Trust 
regulations relating to the permitted uses of the AmeriCorps education 
award. This change will expand the definition of ``current'' 
educational expenses to include expenses incurred after an individual 
enrolls in a term of service as an AmeriCorps member.

DATES: This final rule is effective February 12, 2001.

FOR FURTHER INFORMATION CONTACT: Gary Kowalczyk, Coordinator of 
National Service Programs, Corporation for National and Community 
Service, (202) 606-5000, ext. 340. T.D.D. (202) 565-2799.

[[Page 77821]]


SUPPLEMENTARY INFORMATION:

Background

    Through this document, the Corporation for National and Community 
Service adopts a final rule regarding AmeriCorps education awards. 
Under the National and Community Service Act of 1990, as amended (42 
U.S.C. 12501 et seq.), an individual who successfully completes a term 
of service in a national service position (referred to as an 
``AmeriCorps member'') is eligible for an education award. An 
AmeriCorps member may use an education award to repay qualified student 
loans or to pay for approved educational expenses.
    We published a proposed rule on December 1, 1999 (64 FR 67235) to 
clarify one provision regarding eligibility for an education award and 
another provision concerning the use of the education award to pay 
current educational expenses at an institution of higher education. We 
have determined not to proceed on the proposed change regarding 
eligibility. Accordingly, this final rule involves only a change to the 
rules governing the payment of current educational expenses.

Definition of Current Educational Expenses

    Section 148(c) allows an AmeriCorps member to use the education 
award to pay for ``current'' costs of attendance at a qualified 
institution of higher education. The previous rule published on July 
12, 1999, defined ``current'' expenses as covering only those expenses 
incurred after the completion of service. This rule expands the 
definition of ``current'' educational expenses to include expenses 
incurred after an individual enrolls in a term of service as an 
AmeriCorps member. We believe that this change in definition will help 
to avoid unnecessary financial hardship for AmeriCorps members who 
serve while also attending an institution of higher education.

Discussion of the Public Comments

    The proposed rule of December 1, 1999, gave the public sixty days 
to submit comments. We received one comment regarding current 
educational expenses. One commenter expressed concern that the change 
in definition of ``current'' educational expenses would place an undue 
administrative burden on the Corporation and local program operators to 
monitor the pace of such expenditures against the value of the 
education award as it is earned. We do not believe that this concern is 
well-founded. The change in definition will not require such 
monitoring, as there is no necessary connection between the two 
amounts. The rule simply authorizes an AmeriCorps member to use an 
education award to pay for costs of attendance at an approved 
institution of higher education for a period of attendance that begins 
after the member's term of service.

Executive Order 12866

    We have determined that this regulatory action is not a 
``significant'' rule within the meaning of Executive Order 12866 
because it is not likely to result in: (1) An annual effect on the 
economy of $100 million or more, or an adverse and material effect on a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
government or communities; (2) the creation of a serious inconsistency 
or interference with an action taken or planned by another agency; (3) 
a material alteration in the budgetary impacts of entitlement, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) the raising of novel legal or policy issues arising out 
of legal mandates, the President's priorities, or the principles set 
forth in Executive Order 12866.

Regulatory Flexibility Act

    We have determined that this regulatory action will not result in 
(1) an annual effect on the economy of $100 million or more; (2) a 
major increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies, or geographic regions; or 
(3) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets. Therefore, we have not performed the initial regulatory 
flexibility analysis that is required under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.) for major rules that are expected to have 
such results.

Other Impact Analyses

    Because these changes do not authorize any information collection 
activity outside the scope of existing regulations, this regulatory 
action is not subject to review and approval under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3500 et seq.). For purposes of Title 
II of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, as 
well as Executive Order 12875, this regulatory action does not contain 
any federal mandate that may result in increased expenditures in either 
Federal, State, local, or tribal governments in the aggregate, or 
impose an annual burden exceeding $100 million on the private sector.

List of Subjects in 45 CFR Part 2525

    Grant programs--social programs, Student aid, Volunteers.

    Accordingly, the Corporation for National and Community Service 
amends 45 CFR chapter XXV as follows:

PART 2525--NATIONAL SERVICE TRUST: PURPOSE AND DEFINITIONS

    1. The authority citation for part 2525 continues to read as 
follows:

    Authority: 42 U.S.C. 12601-12604.

    2. Section 2525.20 is amended by revising the definition of 
``Current educational expenses'' to read as follows:


Sec. 2525.20  Definitions.

* * * * *
    Current educational expenses. The term current educational expenses 
means the cost of attendance for a period of enrollment in an 
institution of higher education that begins after an individual enrolls 
in an approved national service position.
* * * * *

    Dated: December 6, 2000.
Wendy Zenker,
Chief Operating Officer, Corporation for National and Community 
Service.
[FR Doc. 00-31669 Filed 12-12-00; 8:45 am]
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